December 31, 2020

(ATO)
www.ato.gov.au

The second JobKeeper Payment extension starts from Monday 4 January 2021.

It covers the JobKeeper fortnights between Monday 4 January 2021 and Sunday 28 March 2021.

It means:

• if you are eligible for JobKeeper extension 2 you will need to complete a new decline in turnover test

• the payment rates for your eligible employees will change

• if you are new to JobKeeper you can enrol in the program to participate in the remaining fortnights.

To support you over December and January we have extended some reporting dates.

For JobKeeper fortnight 20 (Monday 21 December 2020 to Sunday 3 January 2021):

• You will have until the end of Monday 4 January 2021 to pay your employees (meet the wage condition).

• Business monthly declarations for JobKeeper fortnights 18, 19 and 20 are now due 28 January 2021.

For JobKeeper fortnights 21 and 22 (starting Monday 4 January 2021 and Monday 18 January 2021):

• You will have until Sunday 31 January 2021 to meet the wage condition for your eligible employees.

This is to make sure that you have paid your eligible employees before claiming JobKeeper payments in your February monthly business declarations.

More about JobKeeper extension 2

This extension period will run from 4 January 2021 to 28 March 2021.

You will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.

You also need to have satisfied the original decline in turnover test. However, if you:

• were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test

• are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.

The rates of the JobKeeper payment in this extension period are:

• Tier 1: $1,000 per fortnight (before tax)

• Tier 2: $650 per fortnight (before tax).

Businesses or not-for-profits

What you need to do

From 28 September 2020, you must do all of the following:

• work out if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners

• notify us and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them

• during JobKeeper extension 1 – ensure your eligible employees are paid at least

  • $1,200 per fortnight for tier 1 employees

  • $750 per fortnight for tier 2 employees

• during JobKeeper extension 2 – ensure your eligible employees are paid at least

  • $1,000 per fortnight for tier 1 employees

  • $650 per fortnight for tier 2 employees.

For your eligible religious practitioners, you must provide certain benefits to them in the fortnight.

If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly). Un-lodged BAS statements may hold up your application for JobKeeper Payments under the JobKeeper extension.

Decline in turnover

The actual decline in turnover test is satisfied for JobKeeper extension 1 when your current GST turnover for the quarter ending 30 September 2020 (July, August and September) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 30 September 2019.

The actual decline in turnover test is satisfied for JobKeeper extension 2 when your current GST turnover for the quarter ending 31 December 2020 (October, November and December) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 31 December 2019.

What is different

Unlike when you calculated the original decline in turnover test, you do not use your projected GST turnover for the relevant quarter being tested. You use your current GST turnover.

To work out which supplies you have made in the turnover test period, you must use the accounting basis you used for GST reporting purposes. Depending on your circumstances, you could use a cash basis or a non-cash basis.

A GST accounting basis will apply to allocate supplies to a test period regardless of whether:

• you are registered for GST

• the supply was a taxable supply, or

• you report GST on a monthly or quarterly basis.

For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable.

If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

You can provide additional turnover information to demonstrate that you satisfy the actual decline in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.

What doesn’t change

To claim for fortnights in the JobKeeper extension 1 or 2:

• You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.

• You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.

• You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:

  • holding an ABN, and

  • declaring assessable income and supplies.

New JobKeeper participants

The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.

How to stop receiving JobKeeper payments

You can choose to stop receiving JobKeeper payments at any time.

If you want to stop receiving JobKeeper payments, you do not need to unenroll. See Step 3 of the relevant JobKeeper guide for more information.

You do not need to notify us if you do not satisfy the actual decline in turnover test for a JobKeeper extension period.

Authorised by the Australian Government, Canberra

Last modified: 30 Nov 2020